EU says Trump’s 'reciprocal' trade policy moves in 'wrong direction'

ISTANBUL

The European Commission criticized US President Donald Trump’s proposed “reciprocal” trade policy on Friday, calling it a step in the "wrong direction" and warning that it threatens global economic stability.

"The European Commission views President Trump's proposed 'reciprocal' trade policy as a step in the wrong direction," the commission said in a statement.

The statement reaffirmed the EU’s commitment to an "open and predictable" global trading system, arguing that tariffs harm businesses, stifle growth, and fuel inflation.

“Tariffs are taxes. By imposing tariffs, the US is taxing its own citizens, raising costs for businesses and increasing economic uncertainty,” it said.

It emphasized that it maintains some of the lowest tariffs in the world, with over 70% of imports entering at zero tariff, and sees no justification for increased US duties on its exports, highlighting its extensive network of trade agreements and that the EU has negotiated more deals than the US to promote fair and transparent trade.

"The EU will react firmly and immediately against unjustified barriers to free and fair trade, including when tariffs are used to challenge legal and non-discriminatory policies," the statement added.

Trump, while en route to the Super Bowl last week, told reporters he would announce the tariffs, followed by additional “reciprocal” tariffs on Tuesday.

The move is expected to prompt a strong reaction from Brussels, reigniting a trade dispute that began in 2018 when Trump first imposed tariffs on European steel and aluminum. Those tariffs were later suspended under the Biden administration, leading to a temporary truce that is set to expire at the end of March.

The EU had previously retaliated against Trump’s tariffs by targeting American products such as bourbon whiskey, motorcycles, and cranberry juice.